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THE 2019

ANNUAL
SURVEY OF
THE CANADIAN
SUPPLY CHAIN
PROFESSIONAL

SUPPLY
PROFESSIONAL

SUPPLYPRO.CA 13
BY MICHAEL POWER

ON THE
RISE
THE PAST YEAR SAW A
HEALTHY JUMP IN AVERAGE
F FACT

76%
The total number
of 2019 survey
respondents who say
SALARIES, ACCORDING TO the supply chain role
in their organization
THE 2019 ANNUAL SURVEY OF has increased in
influence with senior
THE CANADIAN SUPPLY CHAIN management

PROFESSIONAL

Salary by region

$101,735 $92,047
British Columbia $103,376 Saskatchewan
Manitoba/
Alberta
$94,978 $82,317
$95,568 Quebec Atlantic
Ontario Canada*

14 OCTOBER 2019 SUPPLY PROFESSIONAL


YOU SAID

A lot more employers are


Good news overall for Canadian supply chain
professionals: it appears that average salaries in
now asking for supply chain In 2018, female supply chain professionals
reported that they earned about $12,000 less per
the field have seen a rise in 2019. Not only that,
but every region of the country has gotten an
training or if an individual year than males. This year, men said they earned
$100,605 while women took home $91,429 for a
increase in the average salary since the previous
year—with British Columbia receiving the
is enrolled in a designation gap of $9,176 or 9 per cent.

largest jump.
These are a few of the highlights from
program/or has their SALARY BY POSITION
As is the case each year, a person’s position
the 2019 Annual Survey of the Canadian
Supply Chain Professional. Each year, Supply
designation. within an organization affects their salary. Not
surprisingly, those at the executive level have the
Professional magazine surveys readers most earning power. Supply chain professionals
about work-related topics including salary, salary boost of 4.1 to 6 per cent. Nine per cent at the executive level had an average salary
job satisfaction, employment situation and was also the amount of respondents receiving of $140,715, up from last year’s reported
organizational influence, along with challenges a 6.1 to 10 per cent increase and 7 per cent got average of $119,770. Next up is managerial
and trends in the field. This year, we’ve a raise of 10.1 per cent or more, up from 5 per professionals, who earn $108,537. Consultants
partnered with Supply Chain Canada for a more cent last year. Sixty-four per cent anticipated a took home an average of $104,664, a 22-per cent
comprehensive look at the state of the field. raise next year. increase over the $80,697 they reported in 2018.
Those in “strategic” positions earned
A REGIONAL LOOK GENDER GAP $100,813, while the engineering/professional
Overall, the Canadian supply chain professionals The gap between the reported earnings of male category had an average salary of $91,913.
we surveyed reported an average salary of and female respondents closed slightly this year. Supervisors reported that they earned $97,052
$97,183. That’s an overall increase of 8.8 Since Supply Professional began performing the while analysts earned $82,460. The “operations/
per cent over last year’s reported average of survey, a consistent result has been that women tactical” category earned $81,613, while
$89,334. British Columbia’s average salary rose report making less than their male counterparts. “clerical/administration” saw an average salary
from $89,063 in 2018 to $101,735 this year— of $73,478. The average salary for “other”
an increase of 14 per cent. Alberta also saw a positions was $98,313.
sizable jump from $93,694 to $103,376 for a 10-
per cent increase. Quebec saw the average salary AGE MATTERS
increase from $83,581 to $94,978 (a 13-per cent
Mean Salary by Gender A respondent’s age also affects how much they
jump) and Atlantic Canada went from $74,973 n=589 earn, with the younger the respondent the lower
to $82,317 for a 9-per cent increase. Ontario the salary. Those under 26 earned the least, at
went from $91,991 in 2018 to $95,568 this year, $41,520 (although the sample size was small,
while Manitoba/Saskatchewan jumped from under 30). Respondents 26 to 35 years old
$89,560 to $92,047. earned $75,836 while those 36 to 45 took home
Among respondents, 41 per cent reported $96,670. Those 46 to 55 had an average salary of
they had received a salary increase of 2 per cent $99,221 and 56-to-65 year olds earned $110,302.
or less, while 33 per cent had received a 2.1 to Another factor affecting earning potential

F
4 per cent increase. Another 9 per cent gotten a

$100,605 $91,429

Mean Salary by Type of Position


n=589

BASE: All respondents 2019
Executive $140,715
Managerial $108,537
Consultant $104,664
FACT
Strategic
Engineering/professional
$100,813
$91,913 66%
Supervisor $97,052
The number of survey
Analyst $82,460
Operations/tactical $81,613 respondents whose
Clerical/administration $73,478 base salary increased
Other positions $98,313
in the past year.

SUPPLYPRO.CA 15
$110,302 Mean Salary by Company Revenue n=589
$96,670 $119,000
$99,221
$75,836 Up to $51 million to Greater than
$50 million $1 billion $1 billion

$ $$ $$$
$41,520*

Under 26* 26 to 35 36 to 45 46 to 55 56 to 65 over 65* $82,357 $102,038 $111,594


*small sample size (<30) in 2019

YOU SAID

Driving transformation to move from tactical cost savings to become a strategic


business partner providing the organization with competitive advantage is key.

Mean Salary by Education Level

is education, with a higher education level


BASE: All respondents 2019
generally translating into higher earnings. Also, High school or less $91,963
every age range with an adequate sample size Trade/technical diploma $87,273
saw their earnings increase this year. Those College diploma/CEGEP $94,961
with a trade/technical diploma earned $87,273, Some university $98,099
up from last year’s $76,410. A college diploma University Bachelor’s degree $96,821
meant an average salary of $94,961, while MBA $108,811
those with a bachelor’s degree saw a salary Other Masters *$89,791
of $96,821. At $108,811, those with an MBA PhD *n/a
degree took home the most. Supply chain Univ. Degree/MBA/Masters/ $98,142
professionals with a university degree of any PhD (Net)
kind had an average salary of $98,183.
*small sample size (<30) in 2019

SIZE MATTERS
The type of organization a respondent works Mean Salary by Type
at, along with its revenue and the number of of Organization
employees, also affects how much supply
chain professionals earn. Those working in
the oil and gas extraction field earned the most
BASE: All respondents 2019
this year, with an average salary of $121,270. Natural Resources (Net) $108,693
Those in the natural resources sector took home Service (Net) $92,632
$108,693. The trade/wholesale sector earned Trade/Wholesale (Net) $98,011
$98,011 while those in public administration Manufacturing $94,165
and manufacturing reported average salaries Public administration $94,461
of $94,461 and $94,165, respectively. Those Educational services $87,130
in the service industry earned $92,632 while Utilities $101,154
the construction sector saw an average salary Oil and gas extraction $121,270
of $88,562. That’s followed by educational Construction $88,562
services at $87,130.
Those in supply chain looking for higher
earnings would do well to join organizations
with higher revenue, according to the survey. billion earned $102,038 while those working at earners worked at organizations with 500 or
The highest earners in the field work for organizations with revenues up to $50 million more employees. Companies with 100 to 499
companies with revenues greater than $1 billion, took home an average salary of $82,357. employees paid their supply chain professionals
with an average salary of $111,594. Supply The same pattern shows up regarding the an average of $93,736, while the average salary
chain professionals employed at organizations number of people on a company’s staff. With for those employed by companies with one to 99
with revenues between $51 million and $1 an average salary of $101,198, the highest employees was $85,950.

16 OCTOBER 2019 SUPPLY PROFESSIONAL


F
FACT

90%
The number of survey
respondents who are Supply
1 to 99
$85,950
100 to 499
$93,736
500 or more
$101,198
YOU SAID

Supply Chain professionals are


required to be at a higher level
than ever before in terms of
negotiations, collaboration,
influence, strategy and
Chain Canada members that marketing.
report being satisfied with Mean Salary by Number of
their overall job. Company Employees n=589

THE TYPICAL RESPONDENT per cent said supply chain management. A total million. Their departments’ average supply
This year, the average respondent is 45.8 years of 69 responded with vendor management, chain budget this year was $80 million.
old—slightly younger compared to last year’s while 69 said strategic sourcing. Overall, 39 per
average age of 49.7—and works an average cent work management positions, 32 per cent SATISFACTION RATES
of 42 hours a week. They have 18 years of have a strategic position and 26 per cent are in The overall higher salaries this year appear to
experience in supply chain and 8.4 years at their operations/tactical. They each supervised five come with an overall high satisfaction level
current companies. They have also been in their people. Fifty-six per cent of respondents were from respondents. A total of 90 per cent of
job an average of 5.8 years. male, while 41 per cent were female. respondents said they were very or somewhat
When it comes to job functions (respondents Respondents also personally placed an satisfied with their jobs overall. Within that
checked all that applied) 90 per cent said they estimated annual sourcing volume of $29 percentage, 33 per cent said they were very
worked in purchasing/procurement while 72 million, while their departments placed $69 satisfied, while 57 per cent answered that they

Q.10 to Q.12 Years of experience...

F

BASE: All respondents 2019 2109 2019
Total Supply Chain Canada Non-Supply
Chain Canada
n=456 n=456 n=57
Mean Mean Mean

In supply chain 17.9 18.1 20.1


At your current company 8.4 8.3 11.9
In your current job 5.8 5.6 8.6

Q.14 Has influence at the C-level


FACT



BASE: All respondents 2019
Total
2109 2019
Supply Chain Canada Non-Supply $108,693



n=611 n=456 n=57
% % %
Chain Canada
The average salary for natural
resources workers, the
Yes, I am at the C-level 2 2 4 survey’s highest paid industry.
Yes, I have influence at the C-level 46 43 53
No, but I would like to have influence 29 30 19
No, I don’t need to have influence 20 22 19
Don’t know 3 3 4
NS/ REF 0 0 2

SUPPLYPRO.CA 17
YOU SAID

The pace of change and


adoption of SaaS products has
were somewhat satisfied. Another 8 per cent
were not very satisfied and only 3 per cent said made it much easier for small somewhat satisfied with vacation time. A sense
of job security is also high, since 89 per cent
they were not at all satisfied.
Looking specifically at salary, 85 per cent companies to start leaping very/somewhat satisfied with how secure they
were in their position.
of respondents were very/somewhat satisfied
with their income. Among them, 27 per cent forward. However, a large As with previous years, the survey asked
what the top supply chain issue respondents
said they were very satisfied and 58 per cent
were somewhat satisfied. Another 15 per cent number of forwarders are not anticipated facing over the next 12 months.
Cost control usually ranks as the top concern,
reported being not very/not at all satisfied with
their salaries. At the same time, 65 per cent making the leap and are still with this year no exception. Overall, 25 per
cent of respondents answered cost control as
agreed that their compensation level has kept up
with their job responsibilities. Only 9 per cent stuck on decades old legacy the main issue, with staffing issues second at 8
per cent. Risk management, capacity shortages,
strongly disagreed.
Along with their satisfaction regarding salary, systems. technology upgrades and reorganization each
garnered 6 per cent while lack of internal
the survey asked whether respondents felt their support was the main issue for 5 per cent of
compensation level has kept up with their job respondents.
responsibilities. Overall, 65 per cent agreed they Through reaching out to Supply Profession-
had, with 20 per cent of those strongly agreeing. said they were very/somewhat satisfied with al readers and Supply Chain Canada members
Thirty-one per cent disagreed and 9 per cent their work/life balance, while 78 per cent said across the country, we surveyed 611 supply
strongly disagreed. the same about the support they received for chain professionals. That provides a margin of
Across several other areas, respondents their career and professional development. As error of plus or minus 4 per cent, 19 times out of
reported high levels of satisfaction with their well, 87 per cent were very/somewhat satisfied 20. The survey was fielded online from June 4 to
employment situation. For example, 92 per cent with their benefits and 90 per cent were very/ July 21, 2019. SP

Organization pays for...


BASE: All respondents 2019 2109 2019
Total Supply Chain Canada Non-Supply
Chain Canada
n=611 n=456 n=57
% % %
Education courses and other
continuing professional development 75 76 74
Membership in professional associations 74 78 60
Professional certification programs 62 65 56
None of these 15 13 21
NS/ REF 0 1 0

©123RF.COM/ SUMKINN
Gross base salary, that is, before taxes or other
deductions

BASE: All respondents 2019 2109 2019
Total Supply Chain Canada Non-Supply
Chain Canada

Mean Salary by Education Level


n=611 n=456 n=57
% % %
Less than $50,000 4 4 4
$50,000 to $59,999 7 6 7
$60,000 to $69,999 10 11 7
BASE: All respondents 2019
$70,000 to $79,999 12 13 14 Increased 58
$80,000 to $89,999 22 23 23 Decreased 5
$90,000 to $99,999 14 13 12 Remained the same 36
$100,000 to $119,999 9 10 9 NS/ REF 2
$120,000 to $139,999 6 6 5
$140,000 and higher n/a n/a n/a
Prefer not to say 16 14 19

18 OCTOBER 2019 SUPPLY PROFESSIONAL


BY MICHAEL POWER

currently using it, and another 11 processing is a subset of artificial


per cent plan to do so in the next 12 intelligence,” Trask says.
months. As well, 75 per cent have Now that terms like
no plans to use it going forward. “blockchain” and “artificial
When it comes to blockchain, intelligence” have become
84 per cent have no plans to adopt buzzwords with a certain marketing
the technology, while 10 per cent hype attached to them, clients
said they plan to do so in the next frequently ask him how they can
12 months. A total of three per cent get started using them in their
are currently using it. organizations, as well as asking
The internet of things (IoT) is about the benefits, Trask says. “I’ve
seeing a slightly higher number never had to do that in the past—I
who plan to use the technology in just select the technology that I put
TECHNOLOGY the next 12 months, at 19 per cent.
Another 12 per cent are using IoT,
in a platform that I’m building,” he
says. “And if blockchain was the
others, with Canada’s oil fields
having a global reputation for
ADOPTION while 65 per cent have no plans
to do so. At 61 per cent, cloud-
right technology, they would get it
and they wouldn’t know what’s in
leadership in innovation. The
country also tends to be innovative
SURVEY SHEDS based applications had the highest
number of respondents who said
there.” from a supply chain perspective, he
notes.
LIGHT ON they currently use it; 20 per cent
said they planned to use it in the
ADOPTION CHALLENGES
The survey also asked about
In terms of advice for
technology adoption, focus on what
CHALLENGES next 12 months, while 18 per cent
said they had no plans to do so.
challenges organizations faced
when adopting technology, with
the system does rather than what
the technology is, Trask counsels.
OF USING NEW THE POWER OF BUZZWORDS
23 per cent of respondents saying
a lack of strategic vision was
Rather than adopting blockchain
or AI, companies should look to
TECHNOLOGY But many organizations currently
using technologies like AI and
their biggest challenge. Having
no budget came in second, at 21
adopt a tool that solves a business
problem—evaluate the tool based
blockchain may not be aware per cent while 15 per cent cited on how well it solves that problem
Transformation has become a they’re doing so, says Jon Trask, integration issues as their biggest rather than the nature of the
common pursuit among supply chief guru at Blockchain Guru. challenge. Talent shortage (9 per technology itself.
chains eager to adopt the latest Some of those functionalities are cent), a lack of user buy-in (also 9 “Companies tend to put a lot
technologies to help their embedded in software design per cent) and lack of time of pressure on internal employees
organizations run smoother. Yet without users knowing it’s there (8 per cent) were the next largest to make that evaluation,” Trask
the tsunami of new technologies unless they researched the system’s hurdles. says. “But work with good advisors
that are available can overwhelm architecture, he says. Google, for He wasn’t surprised by the that can help you evaluate the
to most experienced supply chain example, contains elements of AI. number of respondents saying landscape. Especially if your
professionals. Organizations not “The Google search they lack strategic vision company is demanding that you
only face challenges choosing functionality uses natural language surrounding technology adoption, go evaluate blockchain as opposed
among those technologies, but also processing, and natural language Trask says. But it’s necessary to the merits of a blockchain
various hurdles in implementation. to define what strategic vision system.” SP
With this in mind, Supply means. For example, government

I just select the


Professional magazine asked about organizations often have
technology implementation and large documents outlining the

technology that I put


its challenges in our 2019 Annual system’s intent. But with other
Survey of the Canadian Supply organizations, practically any $1

in a platform that
Chain Professional. We surveyed million implementation will have
respondents about the use of some type of paper or business

I’m building. And if


technology and digitization within case outlining what it hopes to
their organizations. accomplish. In many cases they

blockchain was the


According to the results, eight may not share that with manager-
per cent of respondents said or associate-level employees. “So,

right technology, they


they’re currently using artificial the company has it,” he says. “The
intelligence, while 16 per cent said question is, are they sharing that?”

would get it and they


they plan to use it within the next While not the case across
12 months. Meanwhile, 74 per cent the board, many Canadian

wouldn’t know what’s


have no plans to use it. organizations are innovative, early
When asked about robotic adopters of technology, Trask says.

in there
process automation (RPA), 13 per Particular companies and industries
cent of respondents said they are tend to be more innovative than

SUPPLYPRO.CA 19
BY MICHAEL POWER

A WHOLE
NEW WORLD
TRENDS IN THE WORLD OF
SUPPLY CHAIN EMPLOYMENT
Supply chain professionals face myriad Vacant positions are often at the buyer “Know what you want to achieve in your
challenges in the contemporary employment or senior buyer level, with candidates more career—what’s the path you really want to get
field. The evolving world of business means able to jump from one industry to another for into,” Naidu says. “If you get the call from the
they must learn new skills while altering and novel experience and exposure. “Gaining more employer, are you able to sell your skill set as it
improving their job-hunting techniques. At the exposure and confidence in working in different applies to the job?”
same time, organizations looking to hire must industries is something that a lot of people
ensure they are doing what’s needed to attract want to try to do versus just being in that one GENDER PAY GAP
and retain the right talent. industry for say, 10 years,” he says. Looking at this year’s salary survey, Neil Drew,
To look at these and other supply chain The importance of soft skills is also rising, director at Winchesters, a recruitment firm,
employment trends, as well as to discuss Naidu notes, with the traits of communication highlighted the gap between salaries earned
the results of Supply Professional’s 2019 and confidence increasingly important to hiring by men and women. Men reported earning
Annual Survey of the Canadian Supply managers. The ability to influence, collaborate $100,605 while women reported earning
Chain Professional, we spoke with several and work closely with stakeholders as well $91,429—a gap of 9 per cent. While that’s a
procurement and supply chain experts. They as think strategically are all important. While smaller difference than 2018, it shouldn’t exist
weighed in on the survey results, employment companies still need those with technical skills, at all. “It has closed, but it’s still a 9 per cent
trends and more. strategic ability is increasingly a factor when difference, and it shouldn’t be,” Drew says.
The increase in the average supply chain making hiring decisions. “It’s almost a balance “I’ve said it every year and I think we need to
salary this year to $97,183 from last year’s of finding someone that has the transactional continue to say it every year. Why?”
$89,334 was a good sign for the industry, says and the strategic ability,” Naidu says. A larger emphasis on supporting the new
Sean Naidu, business manager—procurement/ The services area, and indirect procurement generation of female procurement and supply
purchasing at Hays Recruiting Experts services specifically, are seeing more hiring, chain professionals may help to maintain
Worldwide. Overall, the job market is busy Naidu adds. Manufacturing and the public the gains women have made in the field, he
with plenty of opportunities across the board sector are also hot right now. Whatever the suggests.
in services and manufacturing, especially in field, Naidu advises researching the company The survey results show salaries increasing
Ontario. At the same time, many organizations before applying and be targeted in your overall, and Drew notes he has seen the same
are looking to reduce their number of approach. As well, companies don’t want trend. Small- to medium-sized enterprises
employees while increasing efficiency with the candidates who apply to multiple business units (SMEs) are paying more and catching up
staff they have, Naidu says. in one organization. to larger organizations, likely driven by

20 OCTOBER 2019 SUPPLY PROFESSIONAL


Know what you want to
achieve in your career—
what’s the path you really
competition for the best candidates. In fact, want to get into. If you get spanning 20-plus years won’t all share the same
the market is more candidate driven than it has
been since the financial crisis in 2008. the call from the employer, behaviours and attitudes, Moore encourages
companies to think openly and generationally
Some employers are starting to invest in
trying to hire the best talent, Drew says, which are you able to sell your skill to evolve and accommodate all age groups.
Doing so helps employees of all generations
has pushed salaries up this year. Companies
that have tried to hire staff at lower salary set as it applies to the job?” grow, motivates them to stay while allowing
employers to benefit from their unique skills
levels haven’t seen the quality of candidates and perspectives.
they want, especially in the hyper-competitive Through new technology and innovation,
market in Toronto and its surrounding Moore sees the supply chain field expanding
municipalities. As well, more investment in so much and so rapidly that there is a looming
procurement and supply chain transformation opportunity for candidates. Growth across most shortage of qualified candidates with the right
has meant a booming job market, and therefore, sectors makes it a candidates’ market, with academic credentials. With disruptive trends
competition for top talent, Drew adds. organizations fighting to attract top talent. The like AI, the Internet of Things, digital twins,
“The first thing to do in a transformation jump in average salaries for strategic positions blockchain and other innovations, the field
is hire,” Drew says. “We’ve always said that (consultants’ salaries jumped 22 per cent, for will see a “big bang” of potential employment
in procurement and supply chain, we’ve been example) indicated the value placed on such opportunities rather than technology wiping out
a little behind some countries in Europe and positions and the importance of innovation. jobs in the field.
the US. We seem to be really attacking it now. Adapting to the times, thinking outside the “In reality it’s gone supernova with
So, there seems to be in the couple of years box and embracing new technologies and ideas expanded scope, far faster and further than we
a big influx of hiring and that leaves gaps are characteristics supply chain professionals ever thought,” Moore says.
elsewhere. Which means salaries have gone up should hone to be successful, Manna says. With an aging workforce, supply chain
to compete.” “Those that are able to adapt are seeing it managers are retiring faster than they’re being
Regarding important skills in the field, reflected in their salary and in the demand for replaced and there’s not enough new supply
Drew stressed the advisory, consultative role of candidates like themselves,” he says. chain talent to fill the gap, Moore notes. By
procurement and supply chain to stakeholders, One trend Manna sees is the rise of the some estimates, there are six roles to fill for
vendors and clients—strong communications cannabis industry and supply chain candidates every new graduate with supply chain skills.
skills will be necessary going forward. looking for employment there. It’s not so much Now, he notes, supply chain practitioners need
“Systems are getting better, so the product that attracts them, Manna notes, but skills that include geopolitical savvy, corporate
administrative, operational functions will the opportunity to start on the ground floor of a social responsibility, deep understanding of
decrease,” Drew says. “Technology and process new industry. logistics and disruptive technologies and so-
implementation is big now, but once that’s “It’s also the challenges that go along with called soft skills like leadership, creativity,
done, I think what will be left is an advisory that as well, from building a supply chain from communication and collaboration. Meanwhile,
approach and giving stakeholders a service the bottom up, to putting in the contracts with business schools aren’t keeping up with the
to walk them through the process, versus just the manufacturers, the producers, and then demand for qualified teaching staff in the supply
ordering some stuff and letting them know getting that out to market,” Manna notes. “It’s chain field.
when it comes in.” a challenge in so many different ways, from “The qualifications are expanding as well,”
market penetration and from the industry, from Moore notes. “You’re getting fewer people
RISING SALARIES the regulations and dealing with the different and the ones we have must expand their
It’s heartening to see salaries rise in the provincial guidelines as well.” qualifications for the job they’re doing now.”
survey over the previous year, says Sam With so many disruptive forces affecting
Manna, specialty recruiting partner in supply BIG BANG TO SUPERNOVA supply chain, it’s more important than ever that
chain and logistics, direct and indirect Tim Moore, owner and president of Tim practitioners hone their skills and stay abreast
procurement, operations and planning at Moore Associates, notes that it’s important of technology developments. However, it also
Horizon Recruitment. Practically every region for companies to consider the attitudes and affords opportunities to grow professionally,
and province saw an increase in the average behaviours of different generations when advance in the field and potentially earn more.
salary, with the $9,682 jump in Alberta perhaps searching for candidates, whether it’s the It’s a rewarding, if challenging, time for the
due to recovery in the oil and gas sector. Also Traditionalists (born before 1946), Boomers field. SP
encouraging were increases in Atlantic Canada (1946 to 1964), Generation X (1965 to 1976),
and Quebec, Manna says. Millennials (1977 to 1997), or Generation Z
He agreed with others in the field that (1995 to 2005).
the supply chain job market holds plenty of While members of demographic groups

SUPPLYPRO.CA 21

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